New Oriental Education Q3 Profit Climbs; Sees Higher Revenues In Q4

(RTTNews) - New Oriental Education & Technology Group (EDU), the largest provider of private educational services in China, reported Tuesday that its third-quarter net income attributable to the company increased 16.8 percent to $48.44 million from $41.48 million last year. Earnings per ADS were $0.31, higher than $0.26 last year.

Adjusted attributable net income was $52.89 million or $0.34 per ADS, compared to $45.43 million or $0.29 per ADS last year.

Operating income increased 32.6 percent year-over-year to $42.3 million.

Total net revenues increased 20.6 percent to $346.9 million from prior year's $287.73 million last year.

Net revenues from educational programs and services were $313.3 million, an 19.5 percent increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses.

Total student enrollments in academic subjects tutoring and test preparation courses climbed 25.2 percent to approximately 755,100. The total number of schools and learning centers was 727, an increase of 5 numbers.

Looking ahead, reflecting the ongoing positive momentum, New Oriental expects total net revenues in the fourth quarter to be in the range of $378.1 million to $391.3 million, an year-over-year growth in the range of 15 percent to 19 percent.

On a constant exchange rate basis, the projected revenue growth rate is expected to be in the range of 20 percent to 24 percent for the fourth quarter.